Not feelin’ like trading the Greenback these days? Catch some last-minute pips with these triangles on AUD/CAD and GBP/CHF!
GBP/CHF has been confined in what looks like a descending triangle after it found support at the 1.2450 minor psychological handle this week.
Right now the pair is just above the 1.2500 area of interest, which lines up with a falling trend line that has been unbroken since mid-May. But before you short the pound like there’s no tomorrow, you should know that 1.2500 also lines with a potential “neckline” of a double bottom on the 1-hour chart.
If the pair breaks above the trend line AND the 200 SMA, then we could be looking at another 75-pip move back to the 1.2600 area of interest.
Watch this one closely, brothas!
Remember that triangle support that we spotted a couple of days back? Well, it looks like the Aussie bulls bit after all! As you can see, it popped up like one of Elon Musk’s rockets before encountering resistance at the formidable 1.0335 area.
And now the pair is back down below parity. Are we being presented with another chance to trade a potential upside break? AUD/CAD is now at the .9975 area, which is right smack at the ascending triangle support that we’re looking at. What’s more, there might be a divergence play in the works!
Buying at the first sign of bullish momentum is a good idea if you think that the Aussie’s uptrend will continue. But if you think that we’re in for a downside breakout, then you could also watch this one closely until you see a decisive break (and maybe a retest) below the level.
In any case, make sure you place wide stops for long-term currency cross plays like this one!